Actual Transfers
Most people are familiar with the simple example of a deliberate fraudulent Conveyance. This type of transfer of property is made by a debtor with the intent to defraud, hinder, or delay his or her creditors. In other words, actual transfers generally involve a debtor who, as part of an asset protection plan, contributes his possessions, normally to an “insider,” and leaves himself nothing to pay his financial obligations.
If the plaintiff/creditor prevails in a fraudulent conveyance lawsuit, he or she is entitled to recuperate the property transferred or its value from the transferee, who has received a portion of the debtor’s assets. Subsequent transferees may likewise be targeted, although they normally have stronger defenses than initial or first transferees.